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  • 1.  Fund Designation in Gift Agreement

    Posted 01-17-2025 09:45 AM

    We are offering naming opportunities in a new building on campus.  The building has a tax exempt bond that was used for the construction costs and we've raised the maximum amount we can for the building without it affecting the bond.  The language in our gift agreements have the donors who are naming rooms (all individuals) make gifts to that particular college's Annual Fund.  Our CFO wants us to remove the fund designation from the gift agreement and just have it state that the donor is sponsoring or supporting the particular room to be named.  He thinks that with that language that the University can choose whichever designation it wants.  Anyone have any thoughts on this?  Myself and my VP are not in favor of this change.  

    Thanks, 

    Michael



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    Michael Manning
    University of New England
    Mmanning6@une.edu
    ------------------------------


  • 2.  RE: Fund Designation in Gift Agreement

    Posted 01-17-2025 10:03 AM
    Where do you need to money the most?

    While I do not see any problems with your current designation, I see your CFO's point. The university might have more significant needs than boosting the Annual Fund.

    I've worked with several institutions that dealt with a similar issue. The best solution I've seen is to create a "Top Ten" list of the University's greatest needs and let the donor pick from that list (Annual Fund would be on the list). The list might change each year as your needs shift.

    Anyway, these gift agreements need not specify a single fund - nor leave the fund as "undesignated." Instead, let your donors be part of the decision-making process - within limits.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Fund Designation in Gift Agreement

    Posted 01-17-2025 10:05 AM

    Michael,

    I recommend avoiding the use of gift agreements for naming opportunities. Fund designations are not typically included in naming agreements. As a standard practice, capital project or facility funds are consolidated into a single account.

    For naming opportunities at NC State, it is our responsibility-not the donor's-to determine where funds will be allocated. Prior to approaching the donor, we first seek approval from the Board of Trustees (BoT) to ensure we have the authority to offer the naming opportunity.

    Please let me know if you need further clarification or have additional questions. I have attached our naming toolkit, naming agreement,  and policy. The toolkit and naming are outdated (want to refresh soon), but the policy is fresh. 

    If you have any questions, feel free to contact me at srthoma3@ncsu.edu or 281-384-0358. 

    Best regards,






  • 4.  RE: Fund Designation in Gift Agreement

    Posted 01-30-2025 10:40 AM

    Thanks for your responses.  We use two different documents for a gift that names something.  The gift agreement for the pledge and purpose (fund) and a separate document for the naming, type of display, number of years, etc...  We've worked with our budgeting folks to determine where the money is needed most, Annual Fund.  Which Annual Fund is determined by a conversation with the donor and usually it supports the Annual Fund of the college they graduated from or generally support. 

    Michael



    ------------------------------
    Michael Manning
    University of New England
    Mmanning6@une.edu
    ------------------------------

    Original Message


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